Preowned Business Jet Market To Feel G700 Effect

The market for preowned business jets will become softer as Gulfstream G700 deliveries begin and customers trade in their existing aircraft when they upgrade to the newly certified model. This is according to Hagerty Jet Group, an aircraft broker that specializes in Gulfstreams.

While the company noted that “the Gulfstream market has been anticipating this certification for more than a year…the market will feel an impact from so many aircraft coming for sale because of the G700 deliveries, regardless of the brand.” In the Gulfstream line-up, Hagerty Jet indicated that preowned G500, G600, and G650/650ER inventory will be the most immediately affected models. It also expects Gulfstream to discontinue G650ER production since the G700 is entering service, estimating that the last G650s will be delivered in mid-2025.

Although more than 40 completed G700s are ready to be handed over to customers, the brokerage said “deliveries will be staggered by the availability to train crews and obtain foreign certifications. G700 crews need to be trained by FlightSafety International, which has been offering initial ground training but [is] unable to issue type ratings pending certification of the aircraft/training program. EASA certification is still pending and likely a few months away.”

Supply of preowned Gulfstreams was “at or near historic high levels” in the first quarter, Hagerty Jet noted. It further explained that preowned Gulfstream transactions were down 56 percent quarter-over-quarter, with 37 transactions involving the 10 Gulfstream models that Hagerty Jet tracks versus 85 in the fourth quarter. Year-over-year depreciation of in-production Gulfstreams ranged between 8 percent and 16 percent, it said.